Presentation on Balanced Scorecard Presentation Transcript
Powerpoint Templates THE BALANCED SCORECARD APPROACH BY SUMAYYA QUADRI
WHAT IS BALANCED SCORECARD? The Balanced Scorecard is a strategic planning and management system used to align business activites to the vision and strategy of the organization by monitoring perfomance against strategic goals
BALANCED SCORECARD Concept
It was publishes in 1992 by kaplan and Norton, a book followed in 1996
Traditional performance measurement that only focus on external accounting data are obsolete
The approach is to provide ‘balance’ to the finacial persperctive.
Why use a Balance Scorecard?
Improve organisational performance by measuring what matters
Increase focus on strategy and results
Align organization strategy with workers on a day-to-day basis
Focus on drivers key to future performance
Improve communication of the organization’s Vision and Strategy
Prioritize Projects / Initiatives
4 Original Business Perspectives
The Balanced Scorecard model suggest that we view the organization from 4 perspective
Then Develop metrics, collect data and analyze it relative to each of these perspectives
4 Business Perspective Question
What must we do to create sustainable economic value?
Internal Business Process
To satisfy our stakeholders what must be our levels of productivity, efficiency, and quality?
Learning and Growth
How does our employee performance management system, including feedback to employees, support height performance?
What do our Customer require from s and how are we doing according to those requirements
Balanced Scorecard Strategy Map
Key Implementation Success Factors
Obtaining executive sponsorship and commitment
Involving a broad base of leaders, managers and employees
Enhance information system
Beginning interactive (two-way) communication first
Getting outside help if needed
Greater Customer Satisfaction
It is not a tool you can just think up one night to solve a problem. Instead, it is recommended that you hold a meeting to plan out what goals you would like to see your company reach in each of the four above areas.
while the balanced scorecard gives you an overall view of the four areas for concern in business growth and development, these four areas do not paint the whole picture. The financial information included on the scorecard is limited. Instead, to be successfully implemented, the balanced scorecard must be part of a bigger strategy for company growth
many companies use metrics that are not applicable to their own situation. It is vitally important when using balanced scorecards to make the information being tracked applicable to your needs. Otherwise, the metrics will be meaningless.